Gujarat-based Ratnaveer Precision Engineering Ltd is an engineering company engaged in manufacturing stainless steel products like finished sheets, washers, solar roofing hooks, pipes and tubes. It is one of the few companies that work in the backward integration model. The company has 4 manufacturing units - units I, II, and IV are engaged in backward integration, whereas unit III is used for melting steel scraps in making steel ingots.
The company’s products are used in automotive, solar energy, wind power, oil and gas, pharmaceuticals, instrumentations, etc. Their product portfolio includes 2,500 SKUs of washers.
Ratnaveer Precision Engineering Limited IPO Details
Ratnaveer Precision Engineering is a fresh issue and offer for sale worth ₹165.03 crore. The issue comprises 1,68,40,000 shares and is priced at ₹93 to ₹98 per share. Retail investors can bid for the Ratnaveer Precision Engineering Limited IPO, which will open on September 4, 2023. Ratnaveer Precision Engineering Limited’s IPO will list on NSE and BSE exchanges on September 11, 2023.
Ratnaveer Precision Engineering Limited IPO Objectives
The objectives of Ratnaveer Precision Engineering Limited's IPO are listed below:
- To fund the working capital requirements.
- To meet the general corporate purposes.
Noteworthy Highlights of Ratnaveer Precision Engineering Ltd
- Ratnaveer Precision Engineering has expanded to become a multi-product company from manufacturing a single product.
- The company operates on a synergetic, backwards-integrated business model.
Peer Details
Ratnaveer Precision Engineering faces competition from listed players like M.M. Forgings Limited, Menon Bearings Limited, and Venus Pipes & Tubes Limited.
Ratnaveer Precision Engineering Company Financials
| Particulars | Period ending on March 31, 2023 (₹ in million) | Period ending on March 31, 2022 (₹ in million) |
|---|---|---|
| Total Income | 4,811.45 | 4,284.72 |
| Profit After Tax (PAT) | 250.44 | 94.76 |
| Net Worth | 1,060.54 | 659.74 |
| Earnings Per Share | 7.26 | 2.75 |
| Total Borrowings | 2,299.89 | 1,907.27 |
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Strengths
2The company's net worth increased by 87.45% from ₹565.77 million on March 31, 2021, to ₹1,060.54 million on March 31, 2023.
The company’s profit after tax increased by 5 times from ₹54.59 million on March 31, 2021, to ₹250.44 million on March 31, 2023.
Risks
2The company didn’t enter into long-term agreements with its suppliers, which might result in disruption in raw material supply, affecting the operations.
The company is dependent on a few customers for revenue and does not hold any long-term agreements with the customers. Any disruptions in the current relations may affect the revenue adversely.
